United States stock futures edged lower during Sunday evening deals (Monday AEST) as renewed geopolitical tensions in the Middle East and rising oil prices weighed on sentiment ahead of a crucial week for markets.
By 10:10 am AEST (12:10 am GMT), futures linked to the Dow Jones Industrial Average and the S&P 500 both fell 0.2%, while Nasdaq 100 futures slipped 0.1%.
Investor caution followed a setback in U.S.-Iran diplomacy after President Donald Trump cancelled plans to send envoys Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks, instead suggesting negotiations could take place remotely.
“Too much time wasted on traveling, too much work!” Trump wrote on Truth Social. “Nobody knows who is in charge, including them. Also, we have all the cards, they have none! If they want to talk, all they have to do is call!!!”
Iran signalled no immediate progress, with Foreign Ministry spokesman Esmaeil Baqaei reportedly stating that no meeting between Tehran and Washington is currently scheduled.
Tensions escalated further near the strategically vital Strait of Hormuz after Iran’s Islamic Revolutionary Guard Corps boarded two container ships, according to The Wall Street Journal.
Crude prices moved sharply higher in response. U.S. benchmark West Texas Intermediate rose about 2% to trade above US$96 per barrel, while international benchmark Brent crude climbed roughly 2% to above $107 per barrel.
Markets are also bracing for a heavy week of corporate earnings, with five of the so-called “Magnificent Seven” technology giants due to report results.
The updates are expected to test valuations after a strong rally driven by optimism around artificial intelligence investment.
Attention will also turn to the Federal Reserve’s policy decision on Wednesday, which could mark the final meeting chaired by Jerome Powell before a leadership transition expected next month.
Kevin Warsh is widely anticipated to assume the role following recent developments in his confirmation process.
Despite the dip in futures, U.S. equities ended last week on a strong note, with both the S&P 500 and Nasdaq Composite closing at record highs.
